Private residence relief: separation, divorce or dissolution of civil partnership: effect of court action
If the court recognises an existing equitable interest there is no disposal from the spouse or civil partner with the legal title to the spouse or civil partner with the equitable interest. The Court recognises that interest, it does not create it. The beneficial ownership is not altered.
If the Court orders provision for a spouse or a civil partner out of the sale proceeds of the house the Court has not created or recognised an interest in that house but has only made an order for financial assistance. The beneficial ownership is not altered. This is illustrated by the example at CG65377.
If the Court orders a transfer of the home, to the spouse or to the civil partner or into trust, there is a disposal of an interest by the spouse or civil partner ordered to make the transfer. The Court has created an interest rather than recognising an existing interest. Moreover, the ability of that spouse or civil partner to sell any remaining interest may be restricted because he or she will be unable to offer immediate vacant possession to a purchaser.
For the date of the disposal of the interest see CG22410+.